How Smart Homes Could Benefit from Energy Management Systems
As smart technology and connected devices increase in demand, so does the importance of managing their energy use and software. The new ENERGY STAR Smart Home Energy Management Systems (SHEMS) Program establishes standards in this arena. For instance, many home buyers want security cameras, video doorbells and programmable thermostats for security and an increased sense of control. These features can increase the energy load in the home, so the Environmental Protection Agency (EPA) developed a standard for the energy management of all these systems.
Falling under the robust ENERGY STAR brand, SHEMS is a package of other ENERGY STAR-certified devices and services.
The goal of the program is to ensure that devices are running efficiently and only when needed. In other words, it’s a smart-home service platform and a combination of smart-home devices that connect and subsequently:
- Sense occupancy in the home;
- Schedule and automate energy based on occupancy;
- Report that energy to users; and
- Control devices based on time-of-use electric rates.
To be considered a package, devices must include at least one ENERGY STAR-certified smart thermostat, at least two connected lighting devices (such as an ENERGY STAR bulb or fixture), and one plug load control/management device (home energy monitor, smart plug, etc.). To optimize control of other devices, encouraged (but optional) technologies include refrigerators, clothes washers and dryers, pool pumps, air conditioners and other ENERGY STAR-certified devices.
Version 1 of the SHEMS specification was finalized in fall 2019; performance metrics and the first certified SHEMS packages are expected to be rolled out later in 2020. SHEMS becomes an ENERGY STAR-certified product when many devices are bundled and combined with various services that monitor and control energy use in the home, communicate with the cloud, and interact with the grid.
A program like this could be vital for saving consumers money through smart energy management, particularly as residents become more educated about ongoing home maintenance costs, the total cost of homeownership, and have the desire to keep utility bills low. To learn more about becoming a partner and to view webinars based on your company’s services, visit ENERGY STAR's website.
For more information about NAHB’s sustainable and green building programs, visit nahb.org. To stay current on the high-performance residential building sector, follow NAHB’s Sustainability and Green Building team on Twitter.
Latest from NAHBNow
Jan 21, 2026
Single-Family Home Size Continues to DeclineThe market could see a leveling off of home size trends in 2026 as mortgage interest rates approach 6% on a sustained basis.
Jan 20, 2026
Plan Early for Summer Internship Season with NAHB ResourcesThe most effective internship programs don’t come together at the last minute. To help, NAHB offers the Internship Program Development Guide and Appendices to the Internship Program Development Guide.
Latest Economic News
Jan 21, 2026
Private Residential Construction Spending Edges Higher in October on Home ImprovementsPrivate residential construction spending was up 1.3% in October, rebounding from a 1.4% decline in September 2025. This modest gain was primarily driven by increased spending on home improvements.
Jan 21, 2026
Single-Family Permits Cooled in the FallIn October, single-family building permits weakened, reflecting continued caution among builders amid affordability constraints and financing challenges. In contrast, multifamily permit activity remained steady and continued to perform relatively well.
Jan 20, 2026
New Single-Family Home Size Trends: Third Quarter 2025New single-family home size has been generally falling since 2015 as a response to declining affordability conditions. An exception occurred when new home size increased in 2021 as interest rates reached historic lows. However, as interest rates increased in 2022 and 2023, and housing affordability worsened, the demand for home size has trended lower.